Draft Boiler Upgrade Scheme (Amendment to the Energy Act 2008 etc.) Regulations 2026
I beg to move, That the Committee has considered the draft Boiler Upgrade Scheme (Amendment to the Energy Act 2008 etc.) Regulations 2026. It is a pleasure to serve under your chairmanship, Mrs Hobhouse. The draft regulations were laid before the House on 13 July. The boiler upgrade scheme is the Government’s flagship scheme for supporting the decarbonisation of heating in homes and small non-domestic buildings across England and Wales. Through the scheme, households can receive grants towards the installation of eligible low-carbon heating technologies, primarily heat pumps, helping them to overcome the up-front costs of moving away from fossil fuel heating systems. The draft regulations are an important enabling step towards the future inclusion of heat batteries within the scheme, helping to ensure that consumers can benefit from a wider range of low-carbon heating technologies. In 2025, the Government consulted on expanding the range of technologies supported through the boiler upgrade scheme, including the potential introduction of heat batteries. For members of the Committee who may be unaware, heat batteries are a type of thermal energy storage system that can use low-carbon electricity to generate and store heat for use when it is needed. Following the consideration of consultation responses, the Government confirmed our intention to support heat batteries through the scheme, once appropriate standards and consumer protections are in place. The draft regulations amend section 100 of the Energy Act 2008, which provides powers for the Secretary of State to establish “a scheme to facilitate and encourage renewable generation of heat” in England and Wales. At present, those powers apply only in relation to specified technologies and energy sources. The draft regulations add thermal energy storage systems to that list, providing the necessary legislative foundation for thermal energy storage systems, including eligible heat batteries, to be supported through Government schemes made under those powers, such as the boiler upgrade scheme. It is important to be clear that the draft regulations will not themselves introduce grants for heat batteries into the boiler upgrade scheme. Instead, subject to Parliament approving the regulations, the Government intend to introduce a further statutory instrument to amend the Boiler Upgrade Scheme (England and Wales) Regulations 2022 and enable support for eligible heat batteries through the scheme. The Government are supporting the future inclusion of heat batteries to increase consumer choice, recognising the potential to provide an alternative low-carbon heating solution in properties where heat pump installation may not be suitable. The draft regulations also make a technical amendment to the 2022 regulations to clarify the powers available to the scheme administrator, Ofgem, where an installer has received an ineligible payment. The amendment will allow amounts owed to be recovered through a combination of repayment and offsetting against future grant payments, helping to strengthen scheme administration and safeguard public money. In conclusion, the draft regulations ensure that the legislative framework underpinning the boiler upgrade scheme can accommodate thermal energy storage systems. They represent an important enabling step towards the future inclusion of heat batteries within the scheme, supporting greater consumer choice and helping more households across England and Wales to transition to low-carbon heating. I commend the draft regulations to the Committee.